The housing market this year was totally plagued by low inventory, endless bidding wars ad rising home prices making it tough for the would-be homeowners to get on their foot. The potential homeowners who couldn’t realize their dreams of owning a home in 2020 are wondering whether 2021 will be anything different. Will 2021 be a perfect time to buy a house?
While there have been several port credit homes for sale in the market in 2020, homebuyers are confused about whether or not 2021 is the ideal year for buying a house. Read on to know more on this.
Interest rates will remain low
The major players of the industry expect the mortgage rates to remain as low as 3% from the beginning of 2021. The Mortgage Bankers Association also predicts that the year will start at a 3.1% average rate for 30 year loans. On the other hand, Fannie Mae anticipates a lower rate of 2.8% whereas Freddie Mac projects a 3% average throughout the entire year. So, if you’ve been planning to seek help of some los angeles moving company to move to a new place, you can go about the process.
Home prices will keep rising in the later part of the year
It is most likely that prices of homes will continue to move upwards in 2021, though it seems that the pace will be slow enough than what it was in the previous years. MBA projects a 2.5% hike in prices while Freddie Mac predicts a hike of 2.6%. Fortunately, in case the prices rise, low rate of interest will help demean the impact, though it may mean buying a smaller home or having to deal with higher monthly payment.
You can choose from more homes
Prices may gradually rise but the only benefit is that you will probably get more homes to choose from. Housing starts are predicted to increase steadily by 2021 and this means there will be more construction properties that will hit the market in 2021. Both MBA and Fannie Mae predict more single-family construction than what we saw in the last 2 years.
Housing is local – You can’t forget that
By the end of the day, housing conditions will vary from market to market. Hence, if you’re wondering whether 2021 is a perfect time for buyers, ensure speaking to a local real estate agent in your area. They can help you in filling out conditions in the housing market you’re looking to buy a house in.
With poor credit score, you can grab a low mortgage rate
Mortgage rates will very soon hit their 14th record low rates and hence they will hover at the biggest competitive levels for a minimum of the initial quarter of 2021. Mortgage rates will climb with the progress of 2021 and there is high likelihood for the rates to remain attractive through the year. In case your credit score is great, you can grab great rates.
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